MINISTRY OF CORPORATE AFFAIRS
New Delhi, the 27 February, 2018
G.S.R. (E).—In exercise of the powers conferred by sub-sections (1) and (3) of section 128, sub section (3) of section 129, section 133, section 134, sub section (1) of 136 read with section 469 of the Companies Act, 2013 (18 of 2013), the Central Government hereby makes the following rules further to amend the Companies (Accounts) Rules, 2014, namely:-
1. (1) These rules may be called the Companies (Accounts) Amendment Rules, 2018.
(2) They shall come into force on the date of their publication in the Official Gazette.
2. In the Companies (Accounts) Rules, 2014 (hereinafter referred to as the principal rules), in rule 10, the following proviso shall be inserted, namely:-
“Provided that the Companies which are required to comply with Companies (Indian Accounting Standards) Rules, 2015 shall forward their statement in Form AOC-3A.”.
3. In the principal rules, in the Annexure, after Form AOC-3, the following Form shall be inserted, namely:-
Statement containing salient features of the financial statements
(Division II- Schedule III to the Companies Act, 2013)
(Pursuant to first proviso to sub-section (1) of section 136 of the Act and proviso to rule 10 of the Companies (Accounts) Rules, 2014)
Notes to the Abridged Financial Statements
1. Complete Balance Sheet, Statement of Changes in Equity, Statement of Profit and Loss Statement of Cash Flows (wherever applicable) and other statements and notes thereto prepared as per the requirements of Division II to the Schedule III to the Act are available at the Company’s website at link Copy of financial statement is also available for inspection at the registered office of the company during working hours for a period of 21 days before the date of AGM.
2. The amounts to be shown here should be the same as shown in the corresponding aggregated heads in the financial statements as per Schedule III.
3. Amount, if material, by which any item shown in the financial statements are affected by any change in the accounting policy, should be disclosed separately.
4. The amount of contingent liabilities and that of commitments (to the extent not provided for) should be disclosed separately, as per Division II, Schedule III.
5. All notes forming part of the financial statements as per Schedule III to which specific attention has been drawn by the auditors or which form a subject matter of qualification by the auditor should be reproduced.
6. Any item which constitutes 20% or more of the total income or expenditure (including provisions) should be shown separately.
7. Notes shall include the notes, if any, contained in the financial statements pertaining to the following:
a Period and amount of defaults on the balance sheet date in repayment of borrowings (other than Trade Payables) and interest thereon.
b Business combination like Amalgamations, acquisitions, restructurings, and demergers during the Reporting period.
c Material events affecting the going concern assumption,
d Investigation and inspection conducted or ordered under the provisions of Companies Act, 2013.
e Non-compliance with any law during the Reporting period and the penalties imposed/compounding fees paid.
f Any other note considered significant by the management.
8. Disclosure of Related Party Transaction shall be made in terms of the requirements of Ind AS- 24.
9. Details of cash and cash equivalents shall be disclosed as follows:
a Balances with banks;
b Cheques, drafts on hand;
d Others( specify nature)
(Separate disclosure should be made for cash and cash equivalents earmarked for specific purposes).
10. Segment Reporting shall be in the same format/details as reported in audited financial statements.
The above stated salient features of the abridged financial statements should be authenticated in the same manner as the main financial statements.
Salient features of Director’s Report shall be disclosed.
Salient features shall include the following.
a) State of affairs of the company.
b) Details of Dividend declared.
c) Details of frauds, if any, reported.
d) Details of auditor’s qualifications and reply thereon.
e) Highlights of the company’s performances. These highlights shall be separately given for the companies material subsidiaries
CONSOLIDATED FINANCIAL STATEMENTS
Where a company is required to prepare Consolidated Financial Statements, i.e. consolidated balance sheet and consolidated statement of profit and loss, the company shall mutatis mutandis follow the requirements of Division II to the Schedule III of the Act, as applicable to a company in the preparation of balance sheet and statement of profit and loss. In addition, the consolidated financial statements shall disclose the information as per the requirements specified in the applicable Indian Accounting Standards (Ind AS) including the items specified at Serial numbers (1) and (2) under the heading “general instructions for the preparation of consolidated financial statements” contained in the said Schedule. The company should follow the above requirements mutatis mutandis while presenting the abridged consolidated financial statements.
The Auditor’s report on unabridged financial statements shall also be attached along with this Abridged financial statements.
Note : To be certified in the same manner in which the Balance Sheet is to be certified.”.
[F. No. 1/19/2013-CL-V-Part]
K.V.R. Murty, Joint Secretary